A Sole Proprietorship Is a Business Owned by

question 47

Multiple Choice

A sole proprietorship is a business owned by

• A) one or more persons and is not incorporated.
• B) one person.
• C) one person and is incorporated.
• D) one or more persons,with one person who operates it.

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Definitions:

Pure Competition

A market structure characterized by a large number of small firms, homogenous products, and easy entry and exit, leading to price-taking behavior.

Profit-maximizing

The process of adjusting production and sales to achieve the highest possible profit levels, often by analyzing costs and revenues.

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.

Profit-maximizing Output

The point of production where a company attains its maximum profit.